The increase in VAT on accommodation from 9 to 21 percent directly impacts hotels and holiday parks. Entrepreneurs can only pass on the higher costs to a limited extent without losing guests. As a result, margins are shrinking, while wages and local taxes continue to rise.
Pressure is mounting, particularly in coastal and border regions: the Netherlands is becoming more expensive than neighboring countries with lower rates. Coastal municipalities warn of consequences for the economy, employment, and quality of life. Without adjustment, investments in quality, sustainability, and renewal threaten to come under further pressure.
Raise prices or sacrifice margin
Since January 1, the general VAT rate of 21 percent applies to short-term stays in hotels, holiday parks, guesthouses, and B&Bs, among others. Previously, this was 9 percent. In practice, this means that entrepreneurs must choose: raise prices at the risk of fewer bookings, or absorb part of the tax themselves.
This decision comes at a difficult time. The sector is already struggling with higher labor costs (up by 25 percent since 2020) and rising tourist tax (average tourist tax has increased by 31,4 percent in the 2021-2025 period). In addition, there is the need to invest in quality, sustainability, and innovation. At the same time, the international competitive position is deteriorating. VAT rates for accommodation are lower in Germany and Belgium, making the Netherlands relatively expensive for both domestic and foreign guests.
Coastal municipalities sound the alarm
KIMO/VNKG, the Association of Dutch Coastal Municipalities, recently raised the alarm with the minister regarding this matter. The coastal municipalities fear that declining overnight stays will affect not only accommodations but also the regional economy, employment, and the livability of coastal towns.
Revising the VAT rate can help with this, but municipalities also have influence through tourist and parking taxes. In addition, entrepreneurs can push for more competitive packages, greater added value, and regional cooperation.
Quality of supply under pressure
If no action is taken, the investment capacity in particular will come under pressure. This affects the quality of the offering at a time when guests actually expect more. The VAT increase is therefore not only a fiscal measure, but also a risk to the attractiveness of Dutch tourist regions.
Source and more information: ING Leisure – ING